Sarah Ferguson 'terrified' of former personal assistant who 'knows dirty stuff' about former duchess

In the email dated November 27, 2010, Mr Stern appeared to have forwarded an unfavourable newspaper article about Ms Ferguson.

Epstein allegedly responded: "Who talks?" to which Mr Stern appeared to say: "No idea! Details in the article seem very accurate."

The paedophile allegedly followed with: "I know she called me yesterday . . . johnny blah blah."

Mr Stern appeared to reply: "She is terrified about Johnny. He must know some dirty stuff."

Mr O'Sullivan served as Ms Ferguson's personal assistant for nearly two decades and was reportedly due $126,721 (£110,012).

The sum comprised unpaid wages and tuition fees for an MBA programme at Columbia University that Ms Ferguson had committed to funding.

It appears that the scale of what was owed to Mr O'Sullivan, combined with his lengthy service to the then-Duchess of York, made him a particularly problematic creditor for the royal household.

His intimate knowledge of Ms Ferguson's affairs over 18 years of employment meant that any dispute risked becoming public in a damaging way.

It appears that this outstanding obligation prompted the former Duke of York to seek assistance from Epstein in settling his ex-wife's affairs.

On December 5, 2010, while still serving as a UK trade envoy, Andrew was photographed alongside Epstein as the pair walked through Central Park in Manhattan.

The newly published emails now suggest that this fateful Central Park encounter may have been connected to resolving Ms Ferguson's financial obligations.

Ms Ferguson's financial difficulties extended far beyond the debt to her former assistant.

By late 2010, she owed as much as £5million to various creditors, including substantial legal fees in the United States.

Mr O'Sullivan received an initial proposal of $31,680 (£23,267), presented as a final settlement despite being nearly $100,000 (£73,445) less than his entitlement.

This offer was sent to him on January 7, 2011, as a formal document marked "without prejudice and in full and final settlement".

The personal assistant rejected this drastically reduced figure, insisting on better terms.

The emails indicate that Epstein agreed to intervene in the matter, though the negotiations proved protracted and contentious.

The financier was first informed of the problem on November 23, 2010, when an email forwarded to him noted that while most creditors had accepted reduced settlement terms, there remained "a fly in the ointment".

Despite his willingness to assist, Epstein appeared to express contempt for Mr O'Sullivan in his communications.

In an alleged email to the former Duke of York dated February 28, 2011, the financier confirmed that a deal had been reached, with Mr O'Sullivan accepting $60,000 (£44,067) rather than the full amount owed.

Epstein appeared to write: "He said he would take 60k in wages, pay tax and be done.. I don't trust him at all, and a payment from me at the moment if disclosed to the press would look like a payoff for the little s***."

The emails suggest the personal assistant had ultimately accepted less than half of his original entitlement.

Andrew Mountbatten-Windsor has consistently and strenuously denied wrongdoing in connection with Epstein, and being named or pictured in the files does not imply wrongdoing.

Ms Ferguson has stated in the past her regret with being associated with Epstein, saying: "I would never have anything to do with Jeffrey Epstein ever again. I abhor paedophilia and any sexual abuse of children. It was a gigantic error of judgment."

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